| Whenever employment relationship abruptly comes to an end by the act of either party, the party breaching the contract should compensate the other party in lie of notice. Since it is a compensation and not usual salary, no PF or ESI deductions are required to be made. But, prior notice is given and the employee is continuing in service during and till the notice period comes to an end, the employer is on the rolls of his/her employer and every month he/she is entitiled to receive his/her wages along with co-employees on due date after the wage period. In the second instance, PF and ESI deductions ouoght to be made from such salary or wages. with regards Dr. KSN Sarma Advocate & Management Consultant.
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